An improvement in process for producing encapsulated condiment particles by spray drying wherein said spray-dried particles are cooled while they are maintained in gas-suspended condition in order to prevent them from agglomerating upon collection. The process involves contacting a first spray of particles with cold air to assist in atomizing it; then spraying a second particle stream which contacts the first. The particle stream which is formed, is then discharged through a heating zone, after which it is cooled while being maintained in a gas suspended condition. Finally, the resulting coated particles are separated from the gas.